Energy customers facing power outages longer than 16 hours may be eligible for up to $42 a day in bill credit after the Michigan Public Service Commission approved an annual increase to the credit on Thursday, Sept. 11.
This is a $2 increase from last year’s credit for utility customers without power.
As of 2023, the commission requires power companies to automatically give customers facing prolonged or repeated outages money off of their bills based on the percentage of the company’s customers without power, according to the Michigan Public Service Commission.
Here’s how the formula works:
Regulators acknowledged that the higher payout still won’t necessarily cover the costs tied to power outages due to things like ice and thunderstorms or unexpected errors in generators.
“While we know that these credits may not fully cover expenses and potential losses when the power goes out, they are an important tool for the MPSC to ensure utilities are doing everything they can to restore power quickly,” Michigan Public Service Commission Chair Dan Scripps said. “Unlike typical fines, these credits for violations of the Commission’s Service Quality rules are paid directly and automatically to those customers who are most directly affected by outages.”
In 2024, Michigan utility customers received about $8.5 million in outage credits, according to a news release from the Michigan Public Service Commission.
This article originally appeared on Detroit Free Press: Power outage utility bill credit increases to $42 after Michigan regulators OK increase
Reporting by Natalie Davies, Detroit Free Press / Detroit Free Press
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